ASX-listed Warrego Energy Ltd., Perth, Western Australia, which owns natural gas projects in Western Australia and Spain, reported on Nov. 10 that it has received a nonbinding and indicative proposal from junior urea producer Strike Energy Ltd., Thebarton, South Australia, under which Strike would acquire all of the shares of Warrego that it does not already own.
Under the proposal, Warrego shareholders would receive 0.775 in new Strike shares for each Warrego share held. Shareholders would also receive the net proceeds from the eventual sale of Warrego’s Spanish assets.
Under the proposal, Warrego shareholders would own approximately 30.5% of the combined group and have the right to appoint one member to the Board of Directors.
Warrego owns 50% of a holding in EP469 in Western Australia, including the West Erregulla gas project, and 100% of STP-EPA-0127, which covers 2.2 million acres. Strike plans to use gas from Erregulla. In Spain, it holds an 85% working interest in the Tesorillo gas project in the Cadiz region and a 50.1% working interest in the El Romeral gas to power facility in the Seville region.